While tariff uncertainties linger ahead of an August 1 deadline, investors are pinning their hopes on resilient corporate earnings from Wall Street and European bellwethers to keep stocks and sentiment aloft.
Investors will parse through quarterly results for any clues on the impact trade uncertainty has had on profitability and consumer demand, with the earnings so far described by RBC Capital Markets as "fine but not fabulous".
SAP, which has been riding a boom in demand for its cloud-based offerings spurred by artificial intelligence, will report later on Tuesday as will UniCredit and Julius Baer.
Focus will be on just how much the euro's rise has eaten into profits of the firms in the bloc's export-reliant economy after the single currency surged 9% in the April-June quarter.
The euro is up 13% so far in the year as investors looked for alternatives to U.S. assets and to lower their dollar exposure in the wake of U.S. President Donald Trump's erratic trade policies.
SAP had predicted back in April that for every 1 cent rise in the euro, its annual revenue could decline by around 30 million euros. The euro was last at $1.1688 compared to $1.1329 at the end of April.
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